Wednesday, September 11, 2013
Economy Of Angola In 2000s
An economic reform effort was launched in 1998. Angola ranked 160 out of 174 nations in the United Nations Human Development Index of 2000.In April 2000 Angola started an International Monetary Fund (IMF) Staff-Monitored Program (SMP). The program formally lapsed in June 2001, but the IMF remains engaged. In this context the Government of Angola has succeeded in unifying exchange rates and has raised fuel, electricity, and water rates. The Commercial Code, telecommunications law, and Foreign Investment Code are being modernized. A privatization effort, prepared with World Bank assistance, has begun with the BCI bank. Nevertheless, a legacy of fiscal mismanagement and corruption persists. The civil war internally displaced 3.8 million people, 32% of the population, by 2001.The security brought about by the 2002 peace settlement has led to the resettlement of 4 million displaced persons, thus resulting in large-scale increases in agriculture production. Angola produced over 3 million carats of diamonds per year in 2003,with its production expected to grow to 10 million carats per year by 2007. In 2004 China's Eximbank approved a $2 billion line of credit to Angola to rebuild infrastructure.The economy grew 18% in 2005 and growth was expected to reach 26% in 2006 and stay above 10% for the rest of the decade. The construction industry is another sector taking advantage of the growing economy, with various housing projects stimulated by the government that created various initiatives for this. Examples are the program Angola Investe and the projects Casa Feliz or Meña. However, not all public construction projects are functional; a case in point is Kilamba Kiaxi where a whole new satellite town of Luanda, consisting in the main of housing faclities for several hundreds of thousands of people, remains practically uninhabited, because of prices that are out of reach even for the middle class. ChevronTexaco started pumping 50 kbbl/d (7.9×103 m3/d) from Block 14 in January 2000, but production has decreased to 57 kbbl/d (9.1×103 m3/d) in 2007 due to the poor quality of the oil. Angola joined the Organization of the Petroleum Exporting Countries on January 1, 2007. Cabinda Gulf Oil Company found Malange-1, an oil reservoir in Block 14, on August 9, 2007.